Breach of Contract: Court seals Skye Bank over N3.9b debt

Four Skye Bank branches based in Osogbo have been sealed off after bailiffs from the Osun State High Court stormed the outlets, carting away valuable property to execute a court order.

Reports say the bailiffs carried out the court order got by Tuns Farms Limited and other subsidiaries of Tuns company which had gotten three separate court judgments against the bank totalling N3,991,150 .000 ( N3.9bn) which were affirmed by the Court of Appeal, Akure .

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Sources say the bailiffs who were accompanied by heavily armed policemen carted away generators, vehicles, air conditioners and some other items from the bank.

The company had applied to the court and got the writ of attachment and sale against goods of judgment debtor (Skye Bank).

The bank breached contractual agreements entered with the company which led to the action carried out by the bailiffs of the Osun High Court.

In a certified true copy of one of the judgments delivered by Justice A. O. Ogunlade on March 14, 2014, the court held, “I am convinced by overwhelming evidence laid before me that the Defendant (Skye Bank) breached the fundamental terms of the contract in facility 11 of Exhibit PA1 without lawful justification and I hereby make an award of special damage in full to the Claimant, in the sum of N421,384,000, being the loss the Claimant suffered due to the refusal and failure of the Defendant to comply with the terms and conditions of the contract of 17th August, 2005.

“The claimant through one of the paragraphs of its statement of claim has established the fact that the breach of the terms and conditions of the contract in facility 11 of Exhibit PA1 caused the Claimant’s director and shareholders myriad of psychological trauma and emotional breakdown.”

Counsel for Tuns, Chief Duro Adeyele (SAN), told newsmen that the three cases were resolved in favour of his clients and the Court of Appeal affirmed the judgments.

“The court awarded N902m against the bank in one judgment; N460m in the second verdict and N2.6bn in the third one totalling N3,991,150.000.” Adeyele said.

He also stated that the sealing and removal of property would be extended to any branch of the bank in Nigeria if they could not raise the judgment sum.

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